Decades on, Philippines’ education spending still not enough

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Decades on, Philippines’ education spending still not enough

SCHOOL OPENING. Students attend the first day of classes at Iloilo Central Elementary School in Iloilo City on July 29, 2024.

Arnold Almacen/Iloilo City Mayor's Office

The Philippines fails to meet the recommended education spending benchmark of 4% to 6% of gross domestic product

MANILA, Philippines – How can the Philippine government address the country’s education challenges when it consistently “underinvests” in the sector, falling short of global standards?

The Second Congressional Commission on Education (EDCOM 2) Year Two Report, released on January 27, shows that despite growth in the education budget over the years, funding remains inadequate.

“In line with global trends, the budget for education has risen to an average of 3.2% of the GDP (gross domestic product) in the last 10 years. However, the Philippines has failed to meet the recommended education spending benchmark of 4% to 6% of GDP laid out in the UNESCO 2030 Incheon Declaration (see Figure 13),” EDCOM 2 said.

Graph from EDCOM 2 report

The commission noted that, when adjusted for inflation, the education budget hikes in recent years were actually “modest.”

“From 2013 to 2017, increases in the education sector budget averaged at 21.1% annually; but since then, the average annual increase has slowed to 1.33%,” EDCOM 2 said.

Underinvestment in education was the same observation made by EDCOM 2’s predecessor, EDCOM 1, more than 30 years ago.

EDCOM 2 also emphasized that the government has been misprioritizing its budget allocations. It pointed out that most of the funding has been directed toward secondary and tertiary education, when early childhood education should be given greater priority.

“Despite the critical importance of the foundational years for LLL (lifelong learning) and development, the Philippines allocates the highest per capita funding to secondary and tertiary education, while funding for primary students has seen the least growth and remains the lowest in real terms,” the commission said.

In late 2024, the government found itself at the center of controversy over the 2025 national budget, as it prioritized what was widely seen as lawmakers’ “pork barrel” in a different form. The Constitution states that the education sector should receive the largest share of the national budget. ([WATCH] Inside Track: Marcos’ 2025 national budget is so bad)

‘Inefficient’ use of funds

EDCOM 2 also flagged the “inefficient” use of Department of Education (DepEd) funds. Its report shows that over the past decade, the agency’s unobligated fund allocation by end of year has ranged from 1.1% to 13.5%.

“While these percentages are relatively low compared to other public sector agencies, these translate to billions of public funds due to the agency’s large budget allocation. In terms of actual figures, DepEd has averaged around P27.2 billion in unobligated funds annually,” the commission said.

The unused funds should have been spent on basic resources such as computers, learning tools and equipment, and school furniture, among other items.

EDCOM 2’s recommendations for DepEd including developing “a robust framework for monitoring and reporting educational expenditures” and formulating “financing strategies that address the specific needs of vulnerable sectors and localities with less resources.”

You can access the full Year Two Report here– Rappler.com

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